Seems like a lot of zigzagging, but would that actually end up being a net positive for Aetna?
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Very bad. Retail is a losing game. PBM has lost major clients and is in the crosshairs of many, many state regulators.
Honestly, I think the Aetna side would just be bought out. They will sell off the business to someone else and those who work in Aetna will be laid off in droves. This is clearly speculation but for a business to react in the manner they have recently with all the secrets and lies, then I believe this is the route they will go. The retail was CVS' bread and butter and they will try and invest in those again.
The merger of Aetna and CVS basically put both of the companies as they were before the merger in a position where if they ever split one will succeeded and one will die.
CVS stores need the PBM in order to drive business and remain profitable.
Aetna needs to PBM in order to control costs as well as uses the retail store to offset its losses.
if the PBM goes with Aetna the retail stores will basically just become another Walgreens. if the PBM goes with the stores then Aetna has no lifeline to control costs and future profitability.
Everything else like Oak Street, Omni are, and MinuteClinic and all that is just fluff on top it doesn’t really add any substance one way or the other But they do add debt and or large costs With a loss here and there.
Honestly, no matter how the company could be sliced or diced will basically ki-l one portion of the company just keep the other one to survive. If they look immediate sense, letting the stores dies to save the insurance side would probably be the move. They make but longevity wise that’s a foolish decision because PBM’s in health insurance is days are probably numbered in the next few decades.
With that said they will take the short gain and ignore longevity.
The one thing I can’t figure out is what if they offshoot Caremark and leave Aetna and CVS together. what that would do is interesting.
It depends on what assets go where. Seemingly Aetna and the PBM spinoff make the most sense as most of our competitors are structured similarly. This all hinges on of course the huge debt saddling this company and what burden is placed on either unit and which leaders go where. Being part of Aetna I would like to see us break off CVS.
If they fired Karen the stock would pop 20% the same day.
It would be a dream come true to be released from this mess!
Can't really see what breaking up would accomplish at this point... there is no life boat
I think it depends what they are gonna do with PBM/Caremark.